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FARM ACCOUNTING 



-FOR- 



The PRACTICAL FARMER 



yUL 



—BY- 
LLOYD E. GOODYEAR 



^ 




1911 

Good year-Marshall Publishing Co. 

Cedar Rapids, Iowa 






Copyright, 1911. 
Goodyear-Marshall Publishing Company. 



CCI.A278952 



Farm Accounting. 



T^' 



The farm is a factory in which thought, mone_y, and labor are appHed to soil and natural 
orces in order to combine them into produce for consumption. So long has mankind been 
engaged in farming that many of its processes can be followed by persons with very little 
conscious learning, and with no account keeping, just as in former times, it was easy to 
secure game with a simple bow and arrow. The fact that a certain amount of farming suc- 
cess can be attained without bookkeeping, has made the farm the one kind of factory where 
bookkeeping has not in the past been universally deemed necessary. Other factories, un- 
less c|uite small, can no longer run successfully without careful attention to accounts. The 
larger the establishement the greater the need of bookkeeping, until we reach the great iron 
works, wood works, machinery wOrks, clothing works, etc., where, if the books were not 
kept for a single day, confusion would reign, and where if books were not kept for a single 
month, dissolution would set in. 

At the present time, we are beginning to witness the coming of men skilled in account- 
ing, who have applied their skill to the farm with the result that large farm chains are be- 
ing organized, replacing the many small farms which are not safeguarded by a scientific 
system of accounting. Those who think clearly cannot fail to see that a proper accounting 
system reduces the labor and mental strain of the prosperous farmer, while the farmer who 
is still struggling with large payments and small income, must depend on account keeping 
until his books have guided him to at least a comfortable degree of success. One must get 
the account keeping attitude. now-a-days, if he would master his business. 

The stories of the successes of our forefathers in subduing the wilderness with their 
vast physical energy, like the stories of knighthood in the middle ages, should contribute 
the qualities of heroism and chivalry to the sons. But the sons cannot make any eminent 
success in business today unless they add to their forefathers' vigor, the incisive judgment 
and adaptability to surroundings demanded by present commercial development. The mod- 
ern guide to success is the intelligently kept ledger; the modern consultation room is the' 
bookkeeper's desk. The proper study of accounts will do much to restore to the farmer the 
primary standing which has been usurped by other masters of business where bookkeeping 
is more highly specialized. 

This set may be classed as belonging to advanced accounting in the sense that it is a 
complete scientific scheme of accounting equal in grade with that used by the banker or mer- 
chant. In operation it is simple and should not, on an ordinary farm, require more than five or 
ten minutes per day for its successful use. The principles given are to be thoroughly mas- 
tered but when once mastered they should be adec[uate to future needs. 

We hope to see in time to come the evidences of well kept books in the material pros- 
perity of the thousands of farms that adorn the thorofares East, West, North, and South. 



FARM ACCOUNTING 



PREPARATION 

It is assumed at the outset that the student is familiar with ordinary business papers and 
legal forms. Among these are included the note, check, draft, receipt, bill or invoice, bank 
book, deposit ticket, statement of account, duplicate order and other carbon duplications, let- 
ter, envelope, R. R. bill of lading, R. R. expense bill, stock certificate, telegram, C. O. D. 
form, lease, common agreement, bill of sale, deed, mortgage, release of mortgage, insurance 
policy, proof of loss, etc. There are few, if any, general business forms that will require par- 
ticular attention in a study of this kind. 

In bookkeeping the student is expected to know the double entry principle and to use 
it in the common books of original entry, together with posting, trial balance and financial 
statement. It is desirable that he be able to introduce special columns where needed. Some 
review in the methods of transferring department statistics to general accounts would also 
be in order. These matters can be gathered from the general treatment in this set but its 
practical value would be enhanced if the attention is not. diverted from the problem actually 
in hand. 

OBJECT 

The objects to be emphasized in this set are (1) an exhibit of the cost of prodticing each 
of the farm products, (2) the returns derived from their sale or use, (3) the general value 
and progress of the business. These facts should be placed in such form as to render 
convenient comparison from year to year. 

THE LEDGER 

This book is divided into two parts — the first, for general accounts, including an account 
with each department of farm industry considered ; the second, including accounts with notes 
and persons. It should be a book large enough and well enough bound to last on an 
ordinary farm for a period of ten years. The standard double entry ledger ruling is used, 
as the explanation column in it allows room for the memoranda that should accompany prac- 
tically all entries. 

TRIAL BALANCE BOOK 

A continuous trial balance (one with titles to the left and several sets of debit and credit 
columns for successive trial balances to the right) is used, in which are recorded the trial 
balances taken on opening the books and thereafter on the last date of each month. 

JOURNAL 

A six-column journal is used for all current entries. This book has special debit and 
credit columns for cash receipts and payments, also merchandise cost and returns. (It will 
be noted that the Merchanchse account represents all finished product in marketable condi- 
tion.) The journal also holds the distribution of labor, team use, and product. These items 
are sttmmarized monthly and charged or credited through the jotirnal to the departments 
affected. 

SUMMARY BOOKS 

The essential summary books are three in number : One having columns each for every 
department requiring manual labor, called the Labor Summary; one having columns for the 
departments requiring the use of teams, called Team Use Seminary; and one having col- 
umns for each division of production having regular output, called Product Summary. Each 
of these books has a miscellaneous column for entries of unusual labor service, team service, 
or source of product. 

The distribution of above essentials is made daily in the summary books. The daily 
items are footed monthly and carried to the ledger accounts affected as above explained. 

The sales summary may be used for original entries like the other summary books, if sales are active 
as they would probably be when garden truck is sold. In such case, sales on account can be posted from the 
sales summary without entry in the journal, except in totals at the close of the month. 



FARM ACCOUNTING 



AUXILIARY BOOKS 

In addition to the above summary books, a number of books for reference not necessary 
to the accounting scheme may be kept. These are called auxiliary (helping) books, and may 
be taken up or discontinued as serves the purpose. Among these may be mentioned registers 
of stock pedigree, records of detailed cost and production in any experimental test, sum- 
mary of sales for the month showing quantity of each commodity, with prices, etc. Such 
books, while valuable for the purposes intended, are independent of the accounting scheme. 

DAILY REPORT CARDS 

Success in keeping fai^ni books depends on convenience in making the original records. 
This is brought about by the use of individual report cards properly ruled and printed to ac- 
commodate the required data. Each person working about the place receives a card in the 
morning in which he fills during the day the time spent in departments, the team use, the 
product passing through his hands, and on the reverse side of the card the business dealings 
which he carries out. This card he returns at night together with any cash or other matter 
that should accompany it. Entries are made from these cards at the convenience of the book- 
keeper who then files them as vouchers. 

PRELIMINARY EXERCISE 

DETAILED RECORD FOR EXPERIMENTAL PURPOSES 

The Poultry Record for experimental purposes is here given. A similar record can 
be kept if desired for any specific line of production. A detailed orchard record, a 
garden record, a real estate record, etc., would be of value in correcting the uncertainties of 
"guessing." 

The experimental poultry record here given exhibits in detail five items of cost : (1) 
labor, (2) feed, (3) housing, ground and tools, (4) stock, (5) miscellaneous. It gives three 
items of production : (1) eggs, (2) stock, (3) miscellaneous. The columns are lettered A 
to H in order to allow a special memorandum to refer to an amount in any column without 
requiring the use of more than one line per day. Other facts are recorded as shown by the 
column headings. Notice particularly that the total value of the investment is entered at 
top and is changed with each day's entries, and at the end of the month, the interest on the 
investment can be easily computed and charged in. 

OPENING THE RECORD 

The inventories at starting should be placed at the head of the columns (red ink) so 
that the current entries following (black ink) can be footed separately. The red ink amounts 
at top plus the footings for the current month will be added and carried to the top of the next 
open folio representing the following month. These in turn will be carried forward month by 
month to Dec. 31, the close of the year, when a new register is to be opened for the ensuing 
year. 

MEMORANDA 

The following entries are made on the assumption that the labor is worth 25c per hour, 
and that money is worth 6 per cent interest annually. Make all daily calculations correct to 
the nearest cent. 

Dec. 1. Began poultry record today with the following property invested : 120 chick- 
ens, 360 lb. @ 10c per lb., entered in column D ; Chicken house valued @ $84.50, fencing, 
crates, etc., $16.80, bone grinder, $7.50, sprayer, $3.00, in column C; 40 lb. chick feed worth 
80 cts., 12 bu. corn @ 50 cts., 7 bu. wheat @ $1.10, in column B; one Poultry Guide Book, 
$1.20, unexpired subscription to the Poultry Journal, 40c, in column E. 

Enter number of poultry on hand in column provided for that purpose. Enter the vahies here shown in 
the respective debit columns (red ink). Enter the total in the investment balance column (black ink). In this 
exercise, entries are to be made directly into the record from memoranda as given. 



FARM ACCOUNTING 



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Dec. 1. During the day, one hour was spent in labor on poultry and 17 eggs worth 24 
cts. per doz. were gathered. Charge labor 25 cts., and credit eggs 34 cts. on the line dated 
Dec. 1. 

Add the debit and subtract the credit from the investment balance showing the invest- 
ment burden reduced to $163.81. 

Dec. 2. Today, spent time 2 hrs. ; nails purchased 10c ; eggs gathered 16 @ 24c. 
Enter and extend balance. 

Note that the explanation referring to the nails purchased refers to the entry for the amount in Column 
"C" — Housing, Ground and Tools. 

Dec. 3. Labor ^ hour; bought 100 lb. oyster shells for 75c; sold the bone grinder 
on hand for $8 ; eggs gathered 8 @ 24 cts. 

Dec. 4. Eggs gathered 15 @ 24 cts. ; labor ^ hour. 

" 5. Labor 1 hr. ; 2 chickens, 8 lb. used or sold @ 10 cts. per lb. ; 19 eggs gath- 
ered @ 25 cts. Count the chickens remaining and place the number in the "No. Fowls" 
column. 

Dec. 6. Added to investment a pen of three fowls for $20; labor 1 hr. ; 16 eggs gath- 
ered @ 25 cts. Enter number of fowls on hand. 

Dec. 7. Labor 1 hr. ; 18 eggs gathered @ 26 cts. ; 10 chickens, 45 lb. sold @ 10 cts. 

" 8. ^ hr. labor ; 14 eggs gathered @ 25 cts. 

" 9. ^ hr. labor ; 17 eggs gathered @ 26 c-ts. 

" 10. 100 lb. granulated bone bought for $3 ; labor y. hr. ; 13 eggs gathered @ 
26 cts. 

Dec. 11. 34 br. labor; 22 eggs gathered @ 26 cts. 

" 12. 1 hr. labor ; purchased glass for repairs 32 cts. ; eggs 15 @ 27 cts. 

" 13. Bought 100 lb. mica grit for 75c : 1 hr. labor ; 21 eggs @ 27c. 

" 14. 1/ hr. labor ; 16 eggs @ 27c. 

" 15. y. hr. labor ; 100 lb. Kaffir corn bought for $1.50 ; 13 eggs @ 27c. 

" 16. 1 hr. labor ; 18 eggs @ 28c. 



FARM ACCOUNTING 



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Dec. 17. 1 hr. labor ; paid poultry association dues $1 ; 24 eggs @ 28c. 

" 18. yi hr. labor ; 17 eggs @ 28c. 

" 19. 1 hr. labor ; 29 eggs @ 27c. 

" 20. Yo hr. labor ; bought 100 lb. poultry mash for $1.75 ; 29 eggs 
chickens sold, 96 lb. @ 10c. 

Dec. 21. y. hr. labor ; 21 eggs @ 28c. 



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" 23. 1 hr. labor; bought 100 lb. charcoal for $1.50; 26 eggs @ 28c; sold 10 chick- 
ens, 45 lb. @ 10j4 cts. 

Dec. 24. Bought 1 dry food hopper $1.50; 1 hr. labor; 27 eggs @ 28c. 
y. hr. labor ; 29 eggs @ 28c. 

Paid for advertisement in poultry journal $3; 1 hr. labor; 23 eggs @ 28c. 
\y2 hr. labor; bought 100 lb. beef scraps for $3.50; 28 eggs @ 27c. 

1 hr. labor ; 27 eggs @ 28c. 

2 hr. labor; 21 eggs @ 29c. 

1 hr. labor ; bought 45 bu. corn @ 48c ; 24 eggs^@ 29c. 

Before making entries for the last day of the month, foot the Investment Bal- 
ances column including the .balance carried forward. The total of the daily balances equals 
in value the entire amount invested for one day. Find the interest on this at 6 per cent 
(point ofT 3 places and divide by 6), and charge the interest in the debit miscellaneous col- 
umn. Complete the record of this day with entry of 1 hour labor; 29 eggs gathered @ 30c. 

Proof of Work. Foot all columns in red ink. Be careful not to include red ink totals 
at top of colunms. The balance at beginning of month plus the sum of debit footings less the 
sum of. credit footings equals balance at close of month if work is correct. 

Loss or Gain. The loss or gain for any period may be found by comparing the last 
balance with the value of property on hand. For example, if on taking an inventory we find 
that we have on hand charged in column B $25.85; C $106.22; D $59.56; and E $3, the 



FARM ACCOUNTING 



Slim of these, $194.63, will show a net gain for the month if greater than the last balance 
or a net loss if less than the last balance. 

Continuing Next Month. Carry the inventory amounts forward (red ink), also num- 
ber of fowls and investment balance (black ink) as before. 



QUESTIONS 



1. How many hours were given to poultry raising during the month ? 

2. How would you find the average egg prodution per fowl ? 

3. How much is now invested in the poultry industry ? 

4. What is the value of the entire investment for the month? 

5. What is the total of returns for the month? 

6. How would you find the total feed cost for the month? (Ans. By subtracting the 
inventory total of feed on hand from the entire total of feed column.) 

7. How can the total profit for the month be found? (Ans. By subtracting the last 
investment balance from the total present value of all property that has been charged in the 
several debit columns.) 

8. How should a following month's record be opened? 

9. Why is interest included as a charge on the last day of the month? 

10. How can the actual investment in this business on a given date be found ? 



Farm Set 

Jan. 1, 1911. E. A. Atkinson, farmer, decides to keep a full set of books so arranged as 
to show the following facts of his farming business : 

1. The amount actually invested at any one time in any department. 

2. The profit or loss on any department. 

3. The outlay necessary for the profitable maintenance of any department. 

4. The waste, if any, that may be eliminated. 

. 5. The amount and kind of his resources and liabilities. 
6. The net profit of farming. 

OPENING THE BOOKS 

Inventory. The first step in preparing to open the books is to take an inventory of all 
property and debts. On a farm this inventory should be listed on journal paper with great 
care to include everything of value about the place and to give to it a fair valuation. After 
the first inventory, subsequent inventories will be found less difficult, as the first one will be on 
record for comparison. When the inventory is completed, copy it neatly in the journal. The 
following are the items : 



FARM ACCOUNTING 



Inventory of Real Estate and Personal Property of E. A. Atkinson's Farm — 5". E. Yi,, Sec. 7, 

Tzup. 83 iV._, 7?." 7 W,, 5 P. M. 

RESOURCES 

1. 160 Acres Land less Buildings $16000.00 

2. Farm House and Improvements, Famil}' use 2700.00 

3. Buildings for use of Teams 420.00 

4. Buildings for use of Dair)^ 950.00 

5. Buildings for use of Hogs _ 300.00 

6. Buildings for use of Poultry ' 116.50 

7. Buildings for storage, including- corn cribs, wheat bin, etc. 250.00 

8. Cow, June ' 55.00 

9. " Lily 65.00 

10. " Cremo 40.00 

11. " Crumple 45.00 

12. " Blackhawk 35.00 

13. " Star 80.00 

14. " Dunn 38.00 

15. " Watercress 45.00 

16. " Spotty 50.00 

17. 4 yearlings 80.00 

18. 3 two-year-olds 90.00 

19. 1 Cream Separator 42.00 

20. I Churn and attachments 58.00 

21. Horse, Dan 160.00 

22. " Caesar 200.00 

23 " Kit 125.00 

24. " Joe 90.00 

25. " Nancy 75.00 

26. 1 two-year-old 80.00 ' 

27. 1 Gang Plow 45.00 

28. 1 Walking- Plow 14.00 

29. 1 Disc Harrow 18.00 

30. 2 Corn Cultivators 72.00 

31. 1 Farm Wagon 56.00 

32. 1 low Wagon 40.00 

33. 1 Corn Planter 28.00 

34. 1 Manure Spreader 22.50 

35. Harness 37.50 

36. 30 head Hogs, 4500 lb., per cwt @ $7.00 315.00 

37. 77 Chickens, 272 lb @ .10 27.20 

38. Chicken Feed carried over 5.10 

39. 1896 bu. Corn @ .50 948.00 

40. 600. bu. Oats @ .35 210.00 

41. 190 bu. Wheat @ .90 171.00 

42. 42 tons Timothy @ 8.00 336.00 

43. 10 tons Prairie Hay @ 4.00 40.00 

44. 16 tons Clover @ 7.50 120.00 

45. 300 head Cabbage @ .04 12.00 

46. 420 bu. Potatoes @ .45 189.00 

47. 200 bu. Turnips @ .25 50.00 

48. 480 lb. dressed Pork @ .08 38.40 

49. 300 lb. dressed Beef @ .06 18.00 

50. 20 Cords Wood @ 5.00 100.00 

51. 459 Posts @ .18 82.62 

52. Cash in Bank ■ 129.88 

Total $25314.70 



10 



FARM ACCOUNTING 



LIABILITIES 

53. Mortgage note favor Monarch Insurance Co., due Jan. 1, 

1913, with interest at 5% payable July 1 and Jan. 1 
until paid. Part purchase price of land. Next inter- 
est payment July 1 $ 7000.00 

54. Note due bank Jan. 15 200.00 

55. James Goodwin, balance due on acct 49.69 

56. A. A. Wells & Co., balance due on acct 178.29 

57. W. Cushman, balance due on acct B.04 

Total $ 7433.02 

As shown in the model, number the items in the inventory 1 to 57 for convenient refer- 
ence later on. 

Ledger. The general accounts of the ledger will include Proprietor's Investment, Cash, 
Merchandise, Real Estate, Chattels, Dairy, Teams, Hogs, Poultry, Orchard, and Labor. 

Other departments as needed will be opened. Give each account one page of ledger 
space. The general accounts will occupy pages 1 to 20. The order of their entry is given 
under "Opening the Ledger" on the following page. 

The personal accounts are to be entered in the personal division of the ledger. Be care- 
ful to make full use of the explanatory space. For example, a long time note should have 
explanation showing to whom given, the terms of payment, etc., thus making a convenient 
reference. When personal accounts are opened, any conditions or explanations of the ac- 
count should be recorded at the beginning of the account. Thus, an account opened with an 
employee should give a brief memorandum of the terms of his employment, at the top of the 
ledger account. 

FIRST JOURNAL ENTRY 

The inventory which has been spread on the journal in memorandum form should now 
be reduced to debit and credit entries. Before considering the titles to be used in detail, 
observe that the journal has two special debit and credit columns, which are footed monthly 
and posted from the general columns as single items. 

In making the opening journal entry, total the items Nos. 1 to 7 of the inventory and 
charge Real Estate with their sum. Total items Nos. 8 to 51 and charge Chattels. Charge 
Cash (in general column) with No. 52. 

Credit Nos. 53 an 54 to Notes Payable. Credit Nos. 55 to 57 to the respective persons 
owed. Credit E. A. Atkinson, Proprietor, with the difference between the total debits and 
credits entered. 

Rule and total the opening entry as shown in the model form. 



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FARM ACCOUNTING 



11 



OPENING THE LEDGER 

It has been determined that accounts will be kept with each of the general divisions 
of the business named before. Enter the titles in the general ledger, one page each, reserv- 
ing page one for the proprietor, and opening the other general accounts, giving Cash page 2, 
Merchandise 3, Real Estate 4, Chattels 5, Dairy 6, Teams 7, Hogs 8, Poultry 9, Orchard 
10, Labor 19, General Expense 20. (Reserve pages 11 to 18 for crop accounts that will be 
opened later in the year.) Enter the financial accounts beginning with Notes Payable in 
the second division of the ledger, on page 21, giving one page to each account. Be careful 
to index all accounts. 

Post the proprietor's credit on page 1. Likewise post Real Estate, Chattels, and Cash 
to the respective accounts, using the explanatory space in each instance. 

When the financial accounts are posted, the explanatory space should be freely used 
describing notes and the itemized debits and credits of the accounts with persons. An ac- 
count with a person should be self-explanatory, so that any discussion relative to it would 
not, as a rule, recjuire reference to the original entry. 

Post all accounts in the opening entry. ■ 







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THE TRIAL BALANCE 

A continuous trial balance book is used. This book contains the account titles at the left 
with columns at the right for the monthly trial balances of a year. Li entering the titles, fol- 
low the order in the ledger, and leave blank spaces for such pages as are not used. Notes 
Payable, the first of the financial accounts, would be written on line 21 of the trial balance, 
and lines 7 to 20 would not be required in the opening trial balance. 

After entry, if the trial balance proves, you may consider the books opened. 

USE OF THE GENERAL ACCOUNTS 

An understanding of the use of the general accounts (those on pages 3 to 20) is essen- 
tial. Study carefully the follov\'ing facts. 

Merchandise. Every salable or usable thing produced on the farm (for example, corn, 
hogs, wheat, fruit, milk, eggs), is charged to this account as soon as the farm process of 
preparing it is completed. It is then to be disposed of and when so disposed of. Merchan- 
dise account is credited. Merchandise is the trading account of the farm. 

Real Estate. The cost of the land, buildings and other permanent improvements and 
any labor, cash, or property expended upon it is charged to this account. Real Estate is cred- 



12 



FARM ACCOUNTING 



itecl with the rental value of real property used in any of the departments, as for dairy, for 
storage of products, etc. Other values directly from tlie land as wood, wild fruits, etc., 
would credit to this account. If the' farm is operated to full capacity, the real estate account 
should show a net profit of 2 to 6 per cent. 

Chattels. This account is charged with the value of all personal property not pertain- 
ing to any department of farm work. Such property as is appropriated to any special de- 
partment is charged to that department and a corresponding credit made to Chattels account. 
It will be noted that this account would not ordinarily show much gain or loss, but simply rep- 
resents personal property not classified. 

Crops. When active farming opens, an account is opened with each crop; as corn, oats, 
potatoes, etc. Each of these is to be charged with the rental value of land,, seed, labor, and 
other cost, and credited with product. 

Dairy. Charged with the cost and maintenance of the milch cows, and credited with 
the product. 

Teams. Charged with cost and maintenance of farm draft animals and all farm 
machiner}' dependent on horse power; and credited with the value of their daily work. 

Poultry, Garden, Orchard, and all similar accounts are charged with entire cost of 
rental, stock, labor, etc., and credited with product. 

Labor. Charged wdth wages and board of laborers and credited when the labor done 
is distributed to the departments afifected. 

BLOCKING OUT THE YEAR 

It is impossible to decide in any one day the entire operations of a year on the farm. 
But the main divisions of industry can be blocked out on January 1, and such changes as are 
made from the original plan or additions to it can be considered and entered at a later date. 

For the purpose of explanation, we will assume that Mr. Atkinson divides the accounts 
for the year's work as follows : 

The products of the farm will be charged to Merchandise account together with the 
rental of the buildings used for storage purposes. Make a journal entry debiting Merchan- 
dise with inventory Nos. 38 to 51, and 6% on No. 7, crediting Chattels and Real Estate. 

The following is the entry: 



:2'^Jj'/j^ 



^^;^U^U^ 



^^t.-it.-^nf ^t> ■- 






• / a 






/A 






/J.' 






For the Dairy he will use Building (No. 4), Cows (Nos. 8 to 16), Separator (No. 19), 
and Churn. and attachments (No. 20), as listed in the inventory. 

Charge Dairy with 6% on $950 for rental of building one year and credit Real Estate, 
also with the inventory value of Nos. 8 to 16, 19, and 20 ; and credit Chattels. 

. Charge Teams account with 6% on No. 3 and with inventory value of Nos. 21 to 25, 
and 27 to 35 ; crediting Real Estate and Chattels. 

Charge Hogs account with No. 36 and 6% on No. 5; making proper credits. 

Charge Poultry with Inventory No. 37 and 6% on No. 6, making proper credit. 

Charge Orchard with $6 rental on one acre of ground and the trees on it, the latter 
valued at $120. Credit the entire amount to Real Estate. 



FARM ACCOUNTING 



13 



Charge E. A. Atkinson {Personal account) with annual rental on No. 2 at 6% ; credit- 



ing Real Estate. 

Note that all property in the inventory has been charged to the departments concerned 
except the ground use, which is to be charged to crops later, and the items of inventory Nos. 
17, 18, and 26 which remain in Chattels account until a use or sale of them is made. 

Post the entries to the ledger and carry out the balances. Open an accoimt with E. A. 
Atkinson, personal, in the financial division of the ledger. Be sure to itemize in the ledger 
what each charge or credit is for. 

Before going further, glance over the ledger. On the first page, $17881.68 shows that 
the business owes this amount to the proprietor as net investment. The Cash account shows 
a debit balance of $129.88 on hand. Merchandise account shows salable products of farm 
awaiting disposition amounting to $2335.12. Real Estate account shows a balance of 
$20,326.31 after the several credits are posted. The credits amounting to $410.19 represent 
6% of the Real Estate — value in use. When all the fields are put into use, a total credit equal 
to 6% of the original inventory value should appear. This profit will be reduced by charges 
for taxes, maintenance, etc. Chattels account shows a debit balance of $250, representing 
that value of chattels on hand for which no present use is formd. The remaining general 
accounts should show in the debit column the actual investment in each. The actual invest- 
ment in each department is of great importance and should be carefully considered with a 
view to getting returns proportionate to the investment. 

DAILY REPORTS 

The memoranda from which current entries are made should be reported daily on cards 
and the cards held for entry, and after entry they should be placed in a package for possible 
future reference. The card is so printed as to show where and how long a given person 
worked during the day, what team work was done, the products resulting from the day's 
work, and the general business dealings carried out by him. 



DAILY REPORT 

No.^:!^ . C?zz-<n//o. 101/, 


^ '^-~ LABOR 


DEPARTMENT 


Man 1 


Team | 


HOURS 


AMT. 


HOURS 


AMT. 


'ViesAwa&^C^ti^J^^^^n', 


/^ 




,^ 




\i'^r0^t-i.£Ac^r^ 


^ 








Poultry 


' 'A 
















Teams,^^^^Vv dzAJ^ 


\ 'A 








Real Estateii^..zi2fc;^ 


^ 




±. 




iJ^-^^'^^b^x^Hs'^^'-z/ 










iL_S^ 






























Total Time 


v^ 




J- 




PRODUCTS 




Memo. 


Quantity 


MUk 


Gallons 


^.^ 


Eggs, 


Nnmbei 


/^ , 


^.-.^ 


:^^^ 


^ /^. 





















"5 
Q 



3 




The above card shows on front and reverse sides the day's report of John Bentley, farm 
hand, on Jan. 17, 1911. 



14 FARM ACCOUNTING 



Notice that he spent 4 hr. self and 2 hr. team in timber getting out wood ; 3 hr. with 
t'-.am in dehvery of merchandise ; 2 hr. in dairy work ; J4 hr. in care of hogs ; ^ hr. in care 
of teams ; 24 gal. milk was taken, 17 eggs gathered, and Yi cord of wood was brought up. 

The reverse side of the card shows that he took to market and sold hay for cash $12, 
he delivered 18 lb. butter fat to creamery worth today 24c per lb., and brought back 1000 lb. 
shorts for cow feed worth $1.05 per cwt. 

ROUTINE ENTRIES 

Routine entries in farm books are conveniently made daily, weekly, or monthly. The 
summaries from these entries should be made on the last day of the month. These will be 
illustrated as soon as sufficient memoranda is gathered. Whatever the interval decided on, 
the time selected should be reserved for that purpose, so that the habit of making the entries 
at an appointed time may be formed. 

EMPLOYEES' LABOR 

In this set labor will be computed at a certain rate per month including board or $15 
per month higher without board. The monthly wage plus board will be divided by 250 to 
give the value of labor by the hour. Thus $30 wages + $15 board = $45 -^ 250 = 18 cts. 
per hour. The owner of the farm is credited in personal account with the board of employees 
and the labor account is charged for the same. 

The following is the list of persons receiving credit for labor beginning Jan. 1, 1911 : 

E. A. Atkinson, Manager, $60 per month. Board not considered. Time to be distributed 
at 24c per hour. 

E. P. Johnson, $30 per month and board. Time to be distributed at 18c per hour. En- 
gaged for one year to Dec. 31, 1911. 

Jonas Overburg, $20 per month and board. Time distributed at 14 cts. per hour. En- 
gaged by the month. 

Open ledger accounts with Johnson and Overburg and write across the ledger the memo- 
randa pertaining to each. 

Team use, including horses, vehicles, and machinery, is to be distributed at 20 cts. per 
hour. 

When the dailv reports of time and product are handed in, it is the bookkeeper's place to 
extend the proper prices opposite each item and make entries in the summary sheets as before 
explained. These summary sheets are footed monthly and charges are made to the depart- 
ment accounts, and the totals are credited to Labor and Teams. 

Entries of business transactions found on the reverse side of the report card should be 
made in the journal. 

The payments of money in currency or by check are not distinguished in this set, for the 
reason that the accounting is not affected by such distinctions. The monthly cash balance as 
shown in the ledger is reconciled with cash on hand and in the bank as in any other business. 

In the month of January following, the student is expected to make out the daily report 
cards of Atkinson, Johnson and Overburg, as they should make them, and then, as book- 
keeper, record them in the blank books. 

MEMORANDA FOR THE REPORT CARDS 
JANUARY 1 

E. A. Atkinson spent 1 hr. in care of hogs. 

Date a report card "Jan. 1, 19 — ,'' fill in the name "E. A. Atkinson," and enter "1" opposite Hogs on 
card in the column headed mayi. Do not fill in the amount. Place the card away for entry in the books 
Saturday, Jan. 7. 

E. P. Johnson spent 4 hr. in dairy work. The milking consisted of 27 gallons. 

Date and fill E. P. Johnson's card, placing the number of hours after Dairy and the number of gallons 
in day's milking after Product. Place the card with E. A. Atkinson's card for entry next Saturday. 

Jonas Overburg spent 2 hr. in care of poultry and 2 hr. in care of teams. He gathered 
30 eggs. 

Prepare Overburg's ticket and place his card with the others of Jan. 1. 

Hereafter in January, prepare tickets for all hands from the memoranda and place the 
tickets in the package for entry at the close of the week. 



FARM ACCOUNTING 



]S 



JANUARY 2 

E. A. Atkinson's report: 

Labor — Chopped wood in timber lot 8 hr. (Real Estate) ; 2 hr. self and team in sale of 
1 load corn (Mdse.) ; 1 hr. in care of hogs. 

Product — 1 cord wood and 17 posts. 

Dealings — Sold 52 bu. corn @ 55 cts. for cash. 

Records of business dealings (reported on reverse side of card) should be journalized on the date of the 
transactions. They frequently involve receipt or payment of cash which should have immediate entry. 

E. P. Johnson's report: 

Labor — 5 hr. self and 2 hr. team in timber (Real Estate) ; 5 hr. in dairy. 

Product — 26 gal. milk and 1 cord wood. 
Jonas Overburg's report: 

Labor — 4 hr. self and team delivering milk (Mdse.) ; 2 hr. in care of poultry; 4 hr. in 
care of horses and repairing harness. 

Product — 36 eggs gathered. 

Dealings — Sold milk tickets (representing 12 gal.) for cash $3. 



^ /^- 



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/ ro 



^ 









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^^ 



Si 



JiX- 



JANUARY 3 

E. A. Atkinson's report: 

Labor — 9 hr. self and 4 hr. team in timber getting out wood, 1 hr. in care of hogs. 

Product — 2 cords wood and 10 posts. 
E. P. Johnson's report: 

Labor — 6 hr. self and 2 hr. team in timber and hauling out wood ; 4 hr. in dairy. 

Product — 26 gal. milk, 1 cord wood, 10 posts. 
Jonas Overbnrg's report: 

Labor — 4^/2 hr. self and team delivering milk, 3y2 hr. in care of poultry, 2 hr. in care of 
teams. 

Product — 24 eggs gathered. 

Dealings — Sold milk tickets (4 gal.) for cash $1. Sold E. A. Atkinson on account milk 
tickets (10 gal.) for $1.50. 

JANUARY 4 

E. A. Atkinson's report: 

Labor — 8 hr. self and 6 hr. team in timber, 2 hr. self and team delivering merchandise, 
1 hr. in care of hogs. 

Product — 2 cords wood. 

Dealings — Sold 2 tons timothv hay for cash @ $8.75. Bought for cash 2000 lb. mill- 
feed for $22. (Charge Mdse.) 



18 FARM ACCOUNTING 



E. P. Johnson's report: 

Labor — 4 hr. chopping wood in timber, 3 hr. self and team delivering merchandise, 3 
hr. in dairy. 

Product — 27 gal. milk, ^ cord wood. 

Dealings — Sold Goldleaf Creamery Co., on account, 27 lb. butter fat @ 24 cts. Sold 
for cash'l>^ tons timothy hay @ $8.75. 
Jonas Overhurg's report: 

Labor — 5)4 hr. self and team delivering merchandise, 2^ hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 43 eggs gathered. 

Dealings — Sold for cash 2 tons timothy hay @ $8.50. Sold milk tickets (8 gal.) for 

cash $2. 

JANUARY 5 

E. A. Atkinson's report: 

Labor — 8 hr. chopping wood in timber, 2 hr. self and team delivering merchandise, 1 
hr. in care of hogs. 

Product — 2 cords wood. 

Dealings — Sold for cash 1 cord wood for $6.50. 
E. P. Johnson's report: 

Labor — 2 hr. chopping in timber, 4 hr. self and team delivering merchandise, 4 hr. in 
dairy. 

Product — 16 posts, 27 gal. milk. 

Dealings — Sold for cash 79 posts @ 21 cts. 
Jonas Overbnrg's report: 

Labor — 5 hr. self and team delivering merchandise, 5 hr. in care of poultry, 2 hr. in 
care of teams. 

Product — 35 eggs gathered. 

Dealings— Sold A. A. Wells & Co. on acct., 12 doz. eggs @ 29 cts. Bought of A. A. 
Wells & Co., on acct., 1 brl. salt for $2, gluten feed for $5.40. (Debit Mdse. with the pur- 
chase. ) 

JANUARY 6 
E. A. Atkinson's report: 

Labor — 4 hr. self and team getting wood from timber, 3 hr. self and team hauling hay to 
market, 1 hr. in care of hogs, IjA hr. in care of teams. 

Product — 1 cord wood. 

Dealings — Sold for cash 1>4 tons timothy hay @ $8.50. Paid Jonas Overburg cash 
on acct. $l0. 
E. P. Johnson's report: 

Labor — 5 hr. self and team getting wood from timber, 5 hr. in dairy. 

Product — }i cord wood, 13 posts, 25 gal. milk. 
Jonas Overhurg's report: 

Labor — 7 hr. self and team delivering merchandise, 1 hr. in care of poultry, 2 lir. in care 
of teams. 

Product — 28 eggs gathered. 

Dealings — Sold A. A. Wells & Co., on acct., 40 bu. potatoes @ 55 cts. Sold milk tickets 
(20 gal.) for cash $5, also 3 qts. milk for cash 21 cts. 

JANUARY 7 

E. A. Atkinson's report: 

Labor — 7 hr. self and team getting wood from timber, 2 hr. self and team delivering 
merchandise, 1 hr. in care of hogs. 

Product — 50 posts. 

Dealings — Sold for cash 60 posts @ 20 cts. 
E. P. Johnson's report: 

Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairj^ 

Product — 27 gal. milk. 

Dealings — Sold for cash 2 cords wood @ $5.75. Sold Goldleaf Creamery Co., on acct.. 
23 lb. butter fat @ 25 cts. 



FARM ACCOUNTING 



17 



Jonas Overhurg's report: 

Labor — 6^ hr. self and team delivering merchandise, ly^ hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 41 eggs gathered. 

Dealings — Sold A. A. Wells & Co., on acct., 250 hd. cabbage @ 6 cts. Sold milk tick- 
ets (16 gal.) for cash $4. 

WAGE CARD 



Rate per Hr. 


IHr. 


ZHrs. 


3Hrs. 


4Hrs. 


5Hrs. 


6Hrs. 


7Hrs. 


8Hrs, 


9Hrs. 


10 Hrs. 


11 Hrs. 


12 Hrs. 


10 Cts. 


10 


20 


30 


40 


50 


60 


70 


80 


90 


1.00 


1.10 


1.20 


11 " 


11 


22 


33 


44 


55 


66 


77 


88 


99 


1.10 


1.21 


1.32 


12 " 


12 


24 


36 


48 


60 


72 


84 


96 


1.08 


1.20 


1.32 


1.44 


13 " 


13 


26 


39 


52 


65 


78 


91 


1.04 


1.17 


1.30 


1.43 


1.56 


14 " 


14 


28 


42 


56 


70 


84 


98 


1.12 


1.26 


1.40 


1.54 


1.68 


15 " 


15 


30 


45 


60 


75 


90 


1.05 


1.20 


1.35 


1.50 


1.65 


1.80 


16 " 


16 


32 


48 


64 


SO 


96 


1.12 


1.28 


1.44 


1.60 


1.76 


1.92 


17 •' 


17 


34 


51 


68 


85 


1.02 


1.19 


1.36 


1.53 


1.70 


1.87 


2.04 


18 " 


18 


36 


54 


72 


90 


1.08 


1.26 


1.44 


1.62 


1.80 


1.98 


2.16 


19 " 


19 


38 


57 


76 


95 


1.14 


1.33 


1.52 


1.71 


1.90 


2.09 


2.28 


20 " 


20 


40 


60 


80 


1.00 


1.20 


1.40 


1.60 


1.80 


2.00 


2.20 


2.40 


21 " 


21 


42 


63 


84 


1.05 


1.26 


1.47 


1.68 


1.89 


2.10 


2.31 


2.52 


22 " 


22 


44 


66 


88 


1.10 


1.32 


1.54 


1.76 


1.98 


2.20 


2.42 


2.64 


23 " 


23 


46 


69 


92 


1.15 


1.38 


1.61 


1.84 


2.07 


2.30 


2.53 


2.76 


24 " 


24 


48 


72 


96 


1.20 


1.44 


1.68 


1.92 


2.16 


2.40 


2.64 


2.88 


25 " 


25 


SO 


75 


1.00 


1.25 


1.50 


1.75 


2.00 


2.25 


2.50 


2.75 


3.00 



ENTRIES 

This completes the week's transactions. Count the cards turned in. Are there twenty- 
one ? Before making any entries in the summary sheets enter on the cards the wage value of 
the time spent correct to the nearest cent. Atkinson 24 cts. per hour, Johnson 18 cts.. Over- 
burg- 14 cts., team 20 cts. Refer to the wage card in making up the distribution of labor 
expense on each item. Then enter the results shown on the Labor Summary and Team Use 
Summary and the product on the Product Summaiy. Having distributed the above three 
itenis, check back journal entries of the transactions which you have made with the entries 
appearing on the back of the cards. 

When the entries have been verified, use pencil footings to show the journal in balance. 
The correct footings for the six columns in their order are $150.78, $29.40, $4672.72, 
$4615.91, $204.99, $32. Add the debit and credit footings to see if their totals are equal. 
Subtract the cash credit column from the cash balance shown in last balance book plus debit 
cash column of journal. After proving the footings, post all entries found in the general 
debit and credit columns. 

JANUARY 8 

E. A. Atkinson's report: 

Labor — 2 hr. in care of hogs. 
E. P. Johnson's report: 

Labor — 6 hr. in dairy. 

Product — 27 gal. milk. 
Jonas 0%'erbiirg's report: 

Labor — 3 hr. self and team delivering milk, 3 hr. in care of poultry, 2 hr. in care of 
teams. 



Product — 32 eggs gathered. 



JANUARY 9 



E. A. Atkinson's report: 

Labor — 4 hr. self and team getting out wood, 4 hr. self and team delivering posts, 3 hr. 
in care of hogs. 

Product — 29 posts. 

Dealings — Sold for cash 100 posts at 21 cts. 



,(^^g^^l9 



LABOR 



Day 

of 

Month 


MEMORANDA 


Entry 
Mark 


Miscellaneous 


Merchandise 


Real Estate 


Chattels 


Dairy 


/ 






















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^ 












^/ 


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^^ 


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X 




XL 




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u 









































r^ 


y^^^^l9 




TEAM USE 














Day 

of 

Month 


MEMORANDA 


Entry 
Mark 


Miscellaneous 


Merchandise 


Real Estate 


Garden 


Potatoes 


-^ 










, 


K=^ 




/^ 










A^ 












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[^ 












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PRODUCTS 



Day 


MEMORANDA 


Enlry 
Mark 


MILK 


KCGS 


WOOD 


POSTS 




Mnntli 


Uiianfitv 


Knrnil'ri< 


Quan 


F Price 


Ounn 


F I'rkc 


nil an 


F Price 


Ouan. 


F Price 


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// 


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./ 


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19_ 



SALES 



^^^^ 



Day 

of 

Month 



7 



MEMORANDA 






Ouar Amnnnl 






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Ouan Amount 









^ 



TIMOTHY 



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SUMMARY 

(Ot'ier .hstributinp is to be written id blank headiags as Deeded) 



Hogs 



Poultry 



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tt. 



rL 



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lA 



^/ 



£Z 



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SUMMARY 

(Other distrbution to be written in blank headings as needed) 



Corn 


Oats 


Wheat 












































H 
































^ 

































































































SUMMARY 

(Other distribution to be written in blank headings as needed) 



Ou.-m- F. Price 



fjuan. F. Price 



an, F Price 



Oiian F Price 



Ouan, F. Price 



Lilian. F. Price 



SUMMARY 

(Other distribution to be written in blank headings as needed) 



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ML 

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//If 4 



loo 



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y/ 



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20 FARM ACCOUNTING 



E. P. Johnson's report: 

Labor — 3 hr. repairing fence, 2 hr. self and team delivering merchandise, 4 hr. in dairy, 
1 hr. self and team in care of orchard. 

Product — 27 gal. milk. 

Dealings — Sold for cash 1 cord wood for $5.25. 
Jonas Oz'erbiirg's report: 

Labor — Gyz hr. self and team delivering merchandise, 1^ hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 27 eggs gathered. 

Dealings — Sold Eagle Hotel, on acct., 12 gal. milk @ 22 cts. Sold milk tickets (12 
gal.) for cash $3. Sold W. Cushman, on acct., 1 cord wood for $5.50. 

JANUARY 10 

E. A. Atkinson's report: 

Labor — 6 hr. self and team delivering merchandise, 1 hr. in care of hogs, 2 hr. in care 
of teams. 

Dealings — Sold for cash 180 bu. corn @ 57 cts. Took for personal use from mer- 
chandise included in first inventory 480 lb. dressed pork @ 9 cts, 300 lb. dressed beef @ G^/ 
cts. (Charge E. A. Atkinson, Personal.) 
E. P. Johnson's report: 

Labor — 8 hr. self and team delivering merchandise, 5 hr. in dairy. 

Product — 25 gal. milk. 

Dealings — Sold W. Cushman, on acct., 4 cords- wood @ $5.50. 
Jonas Overbnrg's report: 

Labor — :5 hr. self and team delivering merchandise, 3 hr. in care of poultry, 2 hr. in 
care of teams. 

Product — 46 eggs gathered. 

Dealings — Sold A. A. Wells & Co.. on acct., 80 bu. turnips (TC 30 cts., 16 doz. eggs (a) 
28 cts. 

JANUARY 11 
E. A. Atlnnson's report: 

Labor — 7 hr. self and team working in timber, 2 hr. in care of hogs, 3 hr. in care of 
teams. 

Dealings — Sold W. Cushman, on acct., 3 cords wood @ $5.50, on ground. 
E. P. Johnson's report: 

Labor — 10 hr. self and team working for A. A. Wells & Co., 1 hr. in care of teams. 
(Enter the time on labor card, filling in the memo space, "work for A. A. Wells & Co.") 

Dealings — Bought of A. A. Wells & Co., on acct., bill of goods for E. A. Atkinson's 
personal use, $29.61. Debit A. A. Wells & Co., 1 day for man and team (man $1.80, team 
$3) $1.80. 

The journal entry will be "A. A. Wells & Co., Dr. $4.80; Labor Cr. $1.80; Teams Cr. $3." Place check 
marks ( V ) in the folio column next to Labor and Teams, to indicate that these credits will not be posted 
separately but will appear in the total credits of these titles for the month as posted from the summary books. 

Jonas Overbnrg's report: 

Labor — 4 hr. self and team delivering merchandise, 6 hr. in dairy, J^ hr. in care of 
poultry. 

Product — 22 gal. milk, 23 eggs gathered. 

Dealings — Sold Eagle Hotel Co., on acct., 12 gal. milk @ 22 cts. Sold milk tickets (20 
gal.) for cash $5. 

JANUARY 12 
E. A. Atkinson's report: 

Labor — 4 hr. self and team delivering merchandise, 5 hr. in dairy, ^4 hr. in care of hogs. 

Product — 24 gal. milk. 

Dealings — Sold W. Cushman, on acct., 2 cords wood @ $5.50. Sold Goldleaf Cream- 
ery Co., on acct., 11 lb. butter fat @ 26 cts. Paid E. P. Johnson Cash on account $20. 
E. P. Johnson's report: 

Labor — 10 hr. self and team working- for A. A. Wells & Co., 1 hr. in care of teams. 

Dealings — Debit A. A. Wells & Co. for 1 day for man and team $4.80. 



FARM ACCOUNTING 21 



Jonas Overhnrg's report: 

Labor — 6 hr. self and team delivering merchandise, 1 hr. in care of poultry, 2 hr. in 
care of teams. 

Product — 33 eggs collected. 

Dealings — Sold 1 cord wood for cash $6. Sold milk tickets (8 gal.) for cash $2. 

JANUARY 13 

E. A. Atkinson's report: 

Labor — 2 hr. in timber, 9 hr. self and 7 hr. team delivering merchandise, Yz hr. in care 
of hogs. 

Dealings — Sold W. Cushman, on acct., 4 cords wood @ $5.50. 
E. P. Johnson's report: 

Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairy. 

Product — 26 gal. milk. 

Dealings — Sold W. Cushman, on acct., 3 cords wood (@ $5.50. 
Jonas Overhnrg's report: 

Labor — 7^^ hr. self and team delivering merchandise, J4 hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 26 eggs gathered. 

Dealings — Sold for cash 2 cords wood for $12.25. 

JANUARY 14 

E. A. Atkinson's report: 

Labor — 9 hr. self and team at auction sale, which he distributes as follows: Dairy 3 hr., 
hogs 3 hr., teams 3 hr. 

Dealings — Bought for cash 1 cow for $39.50 (Dairy), 1 set harness for $14.25 
(Teams), 6 shoats for $31.50 (Hogs), sundry household articles for $3.90 (Atkinson Per- 
sonal ) . 
E. P. Johnson's report: 

Labor — 4 hr. working in timber, 3 hr. self and team delivering merchandise, 4 hr. in 
dairy. 

Product — 27 gal. milk, 5 hogs (farm weight 1605 lb.) 

Dealings — Sold for cash 5 hogs weighing 1568 lb. @ $8.40 per cwt. (Credit Mdse.) 
Jonas Overhnrg's report: 

Labor — 5j^ hr. self and team delivering merchandise, 2iX hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 34 eggs gathered. 

Dealings — Sold for cash 50 bu. corn @ 56 cts. Sold milk tickets (16 gal.) for $4. 

Count the week's tickets to see that all are in — 21 in number. Review your journal 
entries, to see that all dealings have been recorded. Foot the journal column to see that the 
journal is in balance. What is your cash balance? 

Post the general accounts from the journal, but do not post the special column accounts 
until the close of the month. 

Referring to the report cards, extend the amount of each labor item, and make the re- 
Cjuired entries in the summary books as you were instructed to do on Jan. 7. 

On Jan. 9, place Johnson's labor 1 hr. in orchard in miscellaneous column. 

On Jan. 11 and 12 place E. P. Johnson's time for working for Wells & Co. in the miscel- 
laneous column followed by the initial "J," indicating that the charge against Wells & Co. has 
already been made through the journal. The two day's use of team is entered in like man- 
ner in the team use summary. 

Observe that the summary books have one miscellaneous column each for unusual items, 
with a memorandum space before the item to show what it is for. The two day's labor, man 
and team, for Wells & Co. would be itemized in this column. Remember that the totals of 
all labor columns will at the end of the month be posted to the credit of Labor accotmt, and 
of all special columns to the debit of the department named at the head of the column with 
tlie exception of the miscellaneous column, the debits of which, if they concern a personal ac- 
count, are posted from the journal, as it is frecjuently desirable to have such items posted on 



22 FARM ACCOUNTING 



the date of the transaction. If a department is affected, the posting will be done at the end 
of the month. 

Observe further that the summary books have a number of columns without printed 
heads. These columns are to be headed by the bookkeeper at certain seasons of the year 
when other departments become active. Thus, wheat crop, oats crop, corn crop, woulcl re- 
quire much time during certain months and would not be regarded during other months. 
Likewise, the columns Wood and Posts in the product summary will at a later date be dis- 
continued. The departments requiring constant entries have printed heads in the summary 
books. 

You may now foot in- pencil the summarv columns, adding in the pencil footings of the 
7th. 

As an experiment, add the footings of the labor summary and see if the labor actually 
reported agrees with one-half of your monthl}^ pay roll of $140. If it runs behind, investi- 
gate. 

What value have you received from teams to date? Is the output of milk what should 
be expected ? Is the yield of eggs satisfactory ? Note that Overburg is spending less time 
attending to poultry than formerly. Foot in pencil A. A. Wells & Co.'s account, to see how 
it stands. Has W. Cushman still a credit balance? How much has E. P. Johnson received? 
The Eagle Hotel Co. ordered milk only twice. Wh_y do they not order regularly? Ask 
Overburg. Does the Goldleaf Creamery Co. owe us $15.09 or $16.09? They settle by check 
monthly. Do we owe any notes due soon ? How much cash is on hand ? A person keep- 
ing books should form the habit of looking to his books for information about his business. 

JANUARY IS 

E. A. Atkinson's report: 

Labor — 3^ hr. in care of hogs, ^ hr. in care of poultry, Ij/a hr. in care of teams. 

Product — 31 eggs gathered. 
E. P. Johnson's report: 

Labor — 4 hr. in dairy. 

Product — 28 gal. milk. 
Jonas Overburg' s report: 

Labor — 3 hr. self and team delivering merchandise. 

JANUARY 16 

E. A. Atkinson's report: 

Labor — 3 hr. self and team getting wood from timber, 3 hr. self and team delivering 
merchandise, 4 hr. in care of hogs. 

Product — 2 cords wood, 26 posts. 

Dealings — Sold W. Cushman, on acct., 100 posts @ 21 cts. Paid cash in full of the 
bank note due yesterday. (No interest.) 
E. P. Johnson's report: 

Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairy. 

Product— 28 gal. milk. 

Dealings — Sold for cash 2 tons timothy hay @ $9. 
Jonas Overburg' s report: 

Labor — 4 hr. self and team delivering merchandise, J4 hr. in dairy, 2 hr. in care of 
teams, 1^ hr. in care of poultry. 

Product — 30 eggs gathered. 

Dealings — Sold milk tickets (20 gal.) for cash $5. 

JANUARY 17 

E. A. Atkinson is sick. (Make pencil memo in his ledger account.) 
E. P. Johnson's report: 

Labor — 6 hr. self and team 2 hr. and 3 horse team 4 hr. getting wood out from timber, 
4 hr. in dairy, I/2 hr. in care of hogs. 

Product — 27 gal. milk, 3 cords wood, 28 posts. 
Jonas Overbnrg's report: 

Labor — 8 hr. self and team delivering merchandise, 3^ hr. in care of jXJultr)^, 1 hr. in 
care of teams. 



FARM ACCOUNTING • 23 



Product — 37 eggs gathered. 

Dealings — Sold W. Cushman, on acct., 100 posts @ 21 cts. Sold milk tickets (8 gal.) 
for cash $2. 

JANUARY 18 

E. P. Johnson's report: 

Labor — 4 hr. self and team getting out wood from timber, 2 hr. self and team delivering 
merchandise, 4 hr. in dairy, J/4 hr. in care of hogs. 

Product — 26 gal. milk, ^ cord wood. 

Dealings — Sold for cash 2 tons timothy hay for $17.75. Sold to the Goldleaf Creamery 
Co., on acct., 16 lb. butter fat @ 25 cts. 
Jonas Overhurg's report: 

Labor — 5 hr. self and team delivering merchandise, ly, hr. in care of poultry, 2 hr. in 
care of teams. 

Product — 26 eggs gathered. 

Dealings — Sold 1 cord wood for cash $5.50. Sold to A. A. Wells, on acct., 20 doz. 
eggs @ 29 cts., milk tickets (12 gal.) for cash $3. 

JANUARY 19 

E. P. Johnson's report: 

Labor — 6 hr. self and team delivering merchandise, 4 hr. in dairy, i^ hr. in care of hogs. 

Product — 27 gal. milk. 

Dealings — Sold 2 tons timothy hay for cash $17.25. 
Jonas Oz'erbnrg's report: 

Labor — 6 hr. self and 2 teams delivering merchandise, 3^ hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 26 eggs gathered. 

Dealings — Sold 1^4 tons timothy hay for cash $10. Sold milk tickets (12 gal.) for 
cash $3. 

JANUARY 20 
E. P. Johnson's report: 

Labor — 6 hr. repairing fences, 4 hr. in dairy, yi hr. in care of hogs. 

Product — 26 -gal. milk. 

Dealings — Sold to A. A. Wells & Co., on acct., 2^/4 tons timothy hay @ $8.50 on the 
ground. 
Jonas Overburg's report: 

Labor — 8^ hr. self and team delivering merchandise, 3^ hr. in care of poultry, 2 hr. 
in care of teams. 

Product — 27 eggs gathered. 

Dealings — Sold to James Goodwin, on acct., 100 bu. corn @ 59c. Sold milk tickets (8 
gal.) for cash $2. 

JANUARY 21 

E. P. Johnson's report: 

Labor — 4 hr. self and team delivering merchandise, 4 hr. in dairy, ^ hr. in care of hogs. 

Product — 24 gal. milk. 

Dealings — Sold 3 tons timothy hay for cash $26. Sold the Goldleaf Creamery Co., on 
acct., 26 lb. butter fat @ 26 cts. 
Jonas Overhurg's report: 

Labor — 4 hr. self and team delivering merchandise, 4 hr. in care of poultry, 2 hr. in 
care of teams. 

Product — 29 eggs gathered. 

Dealings — Sold Mrs. Jane Cramer, on acct., milk tickets (4 gal.) $1. Sold milk tickets 
(28 gal.) for cash $7. 

Enter the week's reports as before. 

JANUARY 22 

E. P. Johnson's report: 

Labor — 4j4 hr. in dairy. 
Product — 25 gal. milk. 



24 FARM ACCOUNTING 



Jonas Ovcrhurg's report: 

Labor — 5 hr. self and team delivering merchandise, 1 hr. in care of- hogs, 1J4 hr. in 
care of poultry, 2 hr. in care of teams. . 

Product^27 eggs gathered. 

Dealings — Bought of A. Gregory, on acct.. 10 gal. milk @ 16 cts. Sold milk tickets 

(28 gal.) for cash $7. 

JANUARY 23 

E. P. Johnson's report: 

Labor — 8 hr. self and team delivering merchandise, 4^/2 hr. in dairy. 

Product — 25 gal. milk. 

Dealings — Sold for cash 2 cords wood for $12.40. 
Jonas Ovcrhurg's report: 

Labor — 5 hr. self and team delivering merchandise, 1 hr. in care of hogs, ^ hr. in care 
of poultry, 3 hr. in care of teams, 4 hr. for Mr. Atkinson personally (charge to Atkinson's 
personal account through labor summary at close of month.) 

Product — 28 eggs gathered. 

Dealings — Sold A. A. Wells & Co., on acct., 8 doz. eggs @ 30 cts. Sold milk tickets 
(32 gal.) for cash $8. Bought of A. Gregory, on acct. 8 gal. milk @ 16 cts. 

JANUARY 24 

E. P. Johnson's report: 

Labor — 7 hr. self and team delivering merchandise, 5 hr. in dairy. 

Product — 26 gal. milk. 

Dealings — Sold A. A. Wells & Co., on acct., 62 bu. oats @ 36 cts., 45 bu. potatoes @ 
49 cts. 
Jonas Ovcrhurg's report: 

Labor — 3 hr. self and team getting out wood from timber, 5 hr. self and team deliver- 
ing merchandise, 1 hr. in care of hogs, J/^ hr. in care of poultry, IJX hr. in care of teams. 

Product — 31 posts, 27 eggs gathered. 

Dealings — Bought of A. Gregory, on acct., 12 gal. milk @ 16 cts. Sold Mrs. Jane 
Cramer, on acct., milk tickets (4 gal.) $1. Sold Eagle Hotel Co., on acct., 10 gal. milk @ 
22 cts. Sold milk tickets (20 gal.) for cash $5. 

JANUARY 25 

E. P. Johnson's report: 

Labor — 7 hr. self and team delivering merchandise, 4j^ hr. in dairy. 

Product — 25 gal. milk. 

Dealings — Sold l^i tons prairie hay for cash @ $5.25. Sold to A. A. Wells & Co., on 
acct., 61 bu. turnips @ 30 cts. 
Jonas Ovcrhurg's report: 

Labor — 2^ hr. chopping wood in timber, 5 hr. self and team delivering merchandise, 
y2 hr. in care of hogs, 1 hr. in care of poultry, lj4 hr. in care of teams. 

Product — 23 eggs gathered. 

Dealings — Bought of A. Gregory, on acct., 8 gal. milk @ 16 cts. Sold milk tickets 

(32 gal.) for cash $8. 

JANUARY 26 
E. P. Johnson's report: 

Labor — 6j4 hr. self and team delivering merchandise, 5 hr. in dairy. 

Product — 26 gal. milk. 

Dealings — Sold W. Cushman, on acct., 100 posts @ 21 cts. 
Jonas Ovcrhurg's report: 

Labor — 4j^ hr. self and team delivering merchandise, yi hr. in care of hogs, 2 hr. in 
care of poultry, lj4 hr. in care of teams, 2 hr. work for Mr. Atkinson. 

Product — 26 eggs gathered. 

Dealings — Bought of A. Gregory, on acct., 10 gal. milk @ 16 cts. Sold Eagle Hotel 
Co., on acct., 10 gal. milk @ 22 cts. Sold milk tickets (16 gal.) for cash $4. 

JANUARY 27 

E. P. Johnson's report: 

Labor — 7 hr. self and team delivering merchandise, AjA hr. in dairy. 



FARM ACCOUNTING 25 



Product — 26 gal. milk. 

Dealings — Sold for cash 87 bu. wheat @ 96 cts. Paid cash for repairs on wagon $3.50. 
Jonas Overburg's report: 

Labor — ^^5 hr. self and team delivering merchandise, 1 hr. in care of hogs, 1 hr. in care of 
poultry, 1 hr. in care of teams, 2 hr. work for Mr. Atkinson. 

Product — 29 eggs gathered. 

Dealings — Sold Goldleaf Creamery Co., on acct., 15 lb. butter fat @ 26 cts. 

JANUARY 28 

E. P. Johnson's report: 

Labor — 7 hr. self and team delivering merchandise, 4^ hr. in dairy. 

Product — 25 gal. rtiilk. 

Dealings — Sold for cash 98 bu. corn @ 57 cts. Paid Dr. Burrows cash $25 for Mr. 
Atkinson's account. 
Jonas Oz'erbnrg's report: 

Labor — 6 hr. self and team delivering merchandise, J4 hr. in care of hogs, 1^ hr. in 
care of poultry, lyi hr. in care of teams, 1 hr. work for Mr. Atkinson. 

Product — 24 eggs gathered. 

Dealings — Sold milk tickets (16 gal.) for cash $4. 

Enter the week's report as before. Note that the charges for labor for E. A. Atkin- 
son, personal, may be made through the summary book, as there is no haste in posting this 
account. AA^rite his name at top of the next unused column in summary book and carry 
charges as in other columns. 

The work for the three remaining days of the month will now be taken up, after which 
the month's summaries will be journalized and posted, and a trial balance will be taken. 
Note that Johnson and Overburg carry out some unusual transactions which the student 
should take time to enter correctly. 



JANUARY 29 

E. P. Johnson's report: 

Labor — 5 hr. in dairy. 

Product — 26 gal. milk. 
Jonas Overburg's report: 

Labor — 5 hr. self and team delivering merchandise, 1 hr. in care of hogs, 1^ hr. in 
care of poultry, 2 hr. in care of teams. 

Product — 19 eggs gathered. 

JANUARY 30 

E. P. Johnson's report: 

Labor — 7 hr. self and team delivering merchandise, 4^4 hr. in dairy, 1 hr. work for Mr. 
Atkinson. 

Product — 24 gallons milk. 

Dealings — Sold for cash 2 cords wood for $12.75, kept out cash $5 on account, paid 
from cash collected for wood $2 to drug store for items for Mr. Atkinson. 
Jonas Overburg's report: 

Labor — 6 hr. self and team and 2 hr. use of one extra horse in delivering merchandise, 
1 hr. in care of hogs, 1 hr. in care of poultrv, 2 hr. in care of teams. 

Product — 18 eggs gathered. 

Dealings — Sold milk tickets (16 gal.) for cash $4. Sold Eagle Hotel Co., on acct., 12 
gal. Milk @ 22 cts. Sold E. A. Atkinson, on acct., milk tickets (16 gal.) @ 16 cts per gal. 
In reporting cash with his ticket, Overburg could produce only $2.95; charge him with the 
shortage. 

JANUARY 31 

E. P. Johnson's report: 

Labor — 5 hr. self and team delivering merchandise, 4^ hr. in dairy. 

Product — 23 gal. milk. 

•Dealings — Took 20 bu. wheat to mill (estimated at market price, 96 cts. per bu.) and 
brought back 227 lb. bran and shorts (charge to Merchandise at $1.20 per cwt.) and 455 lb. 
flour (charge to E. A. Atkinson, personal, for the difference between the market value of the 



26 



FARM ACCOUNTING 



wheat and the value of the feed taken out.) Bought of A. A. A-Vells & Co. on Atkinson's 
account 1 pair of gloves at 80 cts., for Johnson's personal use. 
Jonas Overhurg's report: 

Labor — 5 hr. self and team delivering merchandise, y2 hr. in care of hogs, 1 hr. in care 
of poultry, 2 hr. in care of teams, 1;^ hr. work for Mr. Atkinson. 

Product — 22 eggs gathered. 

Dealings — Sold Mrs. Jane Cramer, on acct., milk tickets (4 gal.) $1. Sold milk tickets 
(32 gal. (a) 25 cts.) for cash and reports cash $6.75. Sold Goldleaf Creamer)^ Co., on acct., 
18 lb. butter fat @ 27 cts. 

Enter last three days, which close the month, on the same plan as the preceding weekly 
reports. 

CLOSING THE MONTH 

Cash: Mr. Atkinson, who is assumed to have charge of the cash, finds that the stub of 
his bank check book shows that his cash balance in the bank is $495.67 and he has cash in 
pocket $61.19, making total cash $ The cash carried over from last month (see 

trial balance book), plus the debit cash footing of the current month, less the credit cash 
footing equals $ showing the actual cash on hand short $ Charge the 

shortage to E. A. Atkinson's personal account and credit cash. 

Products: From the products summary compute the totals of the different columns at 
farm prices: Milk at 16 cts. per gal, Eggs at 26 cts. per doz.. Wood at $5 per cord, Posts 
at 18 cts. each, Hogs at $7.55 per cwt. Charge their total to Mdse. (general column) and 
credit the respective accounts affected; i. e.. Real Estate, Dairy, Hogs, and Poultry. (In 
charging and crediting departments from the summaries, enter the titles in the order of the 
ledger accounts for convenience in posting. See model.) 

Feed: E. P. Johnson turns in feed ticket for the month which reads as follows : 



Business Dealings 



/a Oa "^'^yS-i^.z^yi^ j::^>CA^-UC^ 



^ 



a. 



J.-^^ ^-c^;?^ 



^d 



'-A'i^ '~i&'i:^-d^r?y' 



/^^ 



/^/ 1Q1 



ry^t.'g^g-^^^^-j^g/ 



U^^ .^Z^^>2^"^l^^^!^'-^^^-^>^^^^y 



^-l^'i^.CA^ j'y 






/ 



Za. 



Estimate the feed used at inventory prices. 

Overburg turns in a feed ticket as follows : 

Feed for horses for month : Timothy hay 3100 lbs., Prairie hay }^ ton, corn 25 bu., 
oats 35 bu. Sundries from mdse. $3. 

Feed of Poultry charged with inventory No. 38 in full. 

Mr. Atkinson makes out the following ticket : 

Feed of Chattels for month: Prairie hay 1J4 tons, Clover ^ ton. Corn 20 bu., Oats 
10 bu. Feed of hogs for month : Corn 65 bu., Oats 30 bu., skim milk 330 gal. at 5 cts. 

Journalize as in model. 

Labor Charge: Atkinson also makes a ticket crediting E. A. Atkinson 3^ month 
wages, Johnson full month and Jonas Overburg full month at the prices agreed upon which 
are (or should be) noted in their ledger accounts. On the same ticket he enters a memo, 
"Labor acct. Dr. to E. A. Atkinson, Personal, board Johnson and Overburg 1 month $30." 

Labor Distribution: Foot the labor summary and charge each department according 
to headings crediting Labor with entire amount as in model. 



FARM ACCOUNTING 



27 



c/f /a^/ 






Sh 



//J' 



Z 
/ 

2 
Z 






y^ZZy1^,^-t^:lZ^^-&zL.i<>v'rv-r>'L^c.i.^^e^ 






'-i^i^-n^^/i^ii^ i_ 



TT^tsxr;'^, 












•^^2,g2^(^:^^'C/i:-*2^™/2^^j!^ tyk^z-^r>-z_(j^ 









v' 



4/aV 



/^7 



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/^ 



Note the Miscellaneous column which has a charge to Orchard 18 cts., two items 
amounting to $3.60 which charge to "Journal," (because previously credited in journal with- 
out posting). Credit the total to Labor. 

Team Use Distribution: Foot the team use summary and charge each department ac- 
cording to headings crediting Teams with the total as in summary. Items in the miscellane- 
ous column should be journalized. See model. 

Closing the Journal: Carry the special columns (Merchandise and Cash) into the gen- 
eral columns and foot the general columns to show in balance. 

Post the ledger. Pencil-foot the ledger, and take a trial balance, recording it in the pair 
of columns following the one recorded Jan. 1. 

SALES SUMMARY (AUXILIARY) 

For purposes of comparison, turn to the sales summary and write in the headings, if 
they are not already printed, the names of the following products which constitute the prin- 
cipal sales of the month : Corn, Oats, Wheat, Timothy, Milk, Butter, Wood, Posts, Eggs, 
Potatoes, and Miscellaneous. From the cards enter the quantity and selling amount of each 
item, and foot in pencil or red ink. This will give an exhibit of the direction of sales during 
the month and will afiford a valuable reference for next January. Also the products on hand 



28 FARM ACCOUNTING 



can be found by adding to' inventory Jan. 1, the amount produced and subtracting the 
amount sold thus : Inventory Jan. 1, 20 cords wood plus January product 17}4 cords, less 
January sales 29 cords, equals 8j4 cords that should be on hand. 
With your ledger before you, answer the following questions : 

1. Cash account — How much cash was received during the month ? How much paid ? 

2. Merchandise account — What was the cost of delivering the products sold during 
the month? What was the farm value of the month's production? How much of the farm 
production was used again for feed ? How much was sold ? 

3. Real Estate account — What was the value of labor and team use put into real 
estate during the month? What was the salable product? Is this account likely to be as 
active as here shown during the remainder of the year. What is the 6% rental value of the 
real property devoted to department uses? Is all real property now used in departments? 
What part is not ? 

4. Chattels account — How much money is now invested in unclassified animals or 
other personal property ? 

5. Dairy account — Is there a, profit or loss shown in dairy during the month? How 
many cows are there? What was the value of the labor on dairy for Januar}^? Of feed? 
Is the product computed at farm price or market price ? Why ? 

6. Teams account — What was the cost of care and feed during the month ? AYhat did 
their use amount to at 20 cents per hour? 

7. Orchard account — W^as any investment -made in orchard during the month? How 
much ? 

8. Hogs account — How much labor and feed were expended on hogs during month ? 

9. Poultry account — Does the ledger show a profit in the poultry department? 

10. Labor account — Was the time actually reported in labor greater than expected? 
How much? If expectations were exactly met. this account would balance out without gain 
or loss. ' 

11. Among the financial accounts, how do we stand with Wells & Co. ? How much has 
Mr. Atkinson been charged with during the month? Some accounts should be collected and 
some accounts should be paid. Name them. 



FEBRUARY 

Rem.ark. — The card system of records has been demonstrated in the January business. To avoid tire- 
some repetition, the cards and summarj' books need not be written in the following work, which has been 
expanded to cover one year's time in order to illustrate the farm turnover. The value of the cards In checking 
up time and keeping every one bus\', as well as providing vouchers for all charges and entries, has been well 
demonstrated in factories in general and should not be neglected on the farm. The following memoranda which 
include monthly summaries is to be entered in the journal direct. It is assumed that the report cards have 
been used, although they are not to be prepared by the student. 

Feb. 1. E. A. Atkinson returns to work. (Ledger memo.) Egg product of January 
in excess of sales should be charged to E. A. Atkinson, personal, @ 2-1 cts. per dozen. (Make 
journal entry.) 

Received from Goldleaf Creamery Co. check to balance account. (Journal entry.) 

Collected cash of the Eagle Hotel Co. in full of account. 

Paid A. Gregory our check to balance account. 

Paid E. P. Johnson our check on account $15. 

Paid Jonas Overburg our check to balance January wage credit. 

Daily reports are assumed to have been rendered by Atkinson, Johnson, and Overburg, 
giving the labor and product matter in addition to above transactions. Consider these tick- 
ets entered in Labor, Team Use, and Product Summaries. 

Post and rule up accounts that are in balance. 

Feb. 2. Bought of W. Cushman, on acct., a h\\\ of lumber, brick, etc., for general 
repairs on buildings and fences $49.16. (Charge Real Estate.) Sold milk tickets (12 gal.) 
for cash $3. 

Feb. 3. Sold W. Cushman, on acct., 50 posts @ 21 cts. Sold for cash 2 cords wood 
@ $5.75. 

Feb. 4. Sold Goldleaf Creamery Co., on acct., 16 lb. butter fat @ 26 cts. Sold milk 
tickets (16 gal.) for cash $4. 



FARM ACCOUNTING 



Feb. 6. Jonas Overburg takes a vacation without pay awaiting the opening of spring 
work. Gave him check for % month's wages in full. Sold A. A. \Vells & Co., on acct., 5 
doz. eggs @ 26 cts. Sold milk tickets (8 gal.) for cash $2. 

Feb. 7. Bought for cash 17 hd. slioats for $102. 

Feb. 8. Sold Eagle Hotel Co., on acct., 17 chickens, 81 lb. @ llyi cts. Sold for 
cash 4 cd. wood @ $5.50. 

Feb. 9. Sold A. A. Wells & Co., on acct., 80 bu. potatoes @ 55 cts. Bought of A. A. 
Wells & Co. sundry items of stock food per bill $9.60. (Charge Mdse.) Sold milk tickets 
(16 gal.) for cash $1. 

Feb. 10. Paid cash $27 for $3000 insurance on buildings, running five years. (Charge 
Real Estate.) Sold milk tickets (20 gal.) for cash $5. 

Feb. ll. Sold Goldleaf Creamery Co., on acct., 10 lb. butter fat @ 26 cts. Sold for cash 
2 cd. wood @ $5.25. Bought bill of furniture for E. A. Atkinson, personal, paying for 
same by check, $16.27. 

Paid Dr. C. Williams by check, for veterinary surgical attendance on work horse $9.50. 
Sold milk tickets (20 gal.) for cash $5. Bought' for cash 2000 lb. mill feed for $20. 

Feb. 13. Bought a work horse, "Jim" for $120, trading in exchange the horse "Joe" 
and paying ch^ck for the difference $10. Sold milk tickets (60 gal.) for cash $15. 

Feb. 14. Bought of A. A. Wells & Co., on acct., a bill of goods for E. A. Atkinson's 
personal use $40.69. Sold A. A. Wells & Co., on acct., 15 doz. eggs @ 25 cts. Sold Gold- 
leaf Creamery Co., on acct., 40 lb. butter fat @ 24 cts. 

Feb. 15. Bought for E. P. Johnson's personal use, sundry items $3.96, paid by check. 

Feb. 16. Sold Eagle Hotel Co., 12 gal. milk @ 22 cts., on acct. 

Feb. 17. Sold for cash 3 hogs, 800 lb., @ $7.50. Bought of A. Gregory, on acct., 15 
gal. milk @ 16 cts. 

Feb. 20. Boarded Herbert Jones, a nursery agent, 4 weeks for $15, on acct. Jones is 
to make payment in fruit trees later on. Sold milk tickets (68 gal.) for cash $17. 

Feb. 25. Sold Goldleaf Creamery Co., on acct., 35 lb. butter fat @ 24 cts. Sold A. A. 
Wells & Co., on account, 12 doz. eggs @ 25 cts. 

Feb. 27. Sold milk tickets (208 gal.) for cash $52. Received of Mrs. Jane Cramer 
cash on acct. $2. 

Feb. 28. Sold for cash 4 tons timothy hay @ $8.50. Sold Goldleaf Creamery Co., on 
acct., 20 lb. butter fat @ 24 cts. Charge E. A. Atkinson, Personal, with 18 doz. eggs @ 
25 cts. 

SUMMARIES FEBRUARY 28 

The summary tickets and books (assumed to have been kept as in Januar)?) give the fol- 
lowing totals : 

Products: Milk 764 gal. @ 16 cts.. Eggs 629 @ 25 cts. per doz., Wood 22 cords @ 
$4.50, Posts 160 @ 18 cts.. Hogs 800 lb. @ $7.30, Chickens 81 lb. @ 11 cts. (Charge Mdse. 
and credit departments.) 

Chattels Feed: 1 ton prairie hay @ $4, j^ ton clover @ $7.50, 15 bu. corn @ 50 cts., 
10 bu. oats @ 35 cts. 

Dairy Feed: 2100 lb. mill feed @ $1.05 per cwt., 24 bu. oats @ 35 cts., 20 bu. corn 
@ 50 cts., 3 ton clover @ $7.50, sundry feed $2.30. 

Team Feed: Timothy 2500 lb. @ $8 per ton, 1 ton prairie hay @ $4, 22 bu. corn (a) 
50 cts., 20 bu. oats @ 35 cts., sundries $2.50. 

Hog Feed: 60 bu. corn @ 50 cts., 30 bu. oats (a; 35 cts., 20 bu. potatoes @ 30 cts., 
319 gal. skim milk @ 5 cts. 

Poultry Feed: 3 bu. corn @ 50 cts., 3 bu. oats @ 35 cts., 12 hd. cabbage @ 5 cts., 1 
bu. potatoes @ 30 cts. 

Labor Charge: Wages Atkinson 1 mo. $'50 : Johnson 1 mo. $30; Overburg yf, mo. 
$3.33. Board Johnson $15, Overburg $3. 

Labor Distribution: Mdse. $24.50, Real Estate $20.70, Dairy $33.80, Teams $15 68 
Hogs $8.94. Poultry $5.22. 

Team Use Distribution: Mdse. $42.30, Real Estate $12.60. 

Journalize, post, and take a trial balance. 



30 FARM ACCOUNTING 



MARCH 

Mar. 1. The division of farm land for the 3'ear follows : Charge the titles given with 
the rental at 6% on valuation of $100 per acre and any other debits noted below: 

Small Fruit, rental on 1 acre $6 and shrubbery worth $30 ; Garden, 2 acres : Potato Crop 
5 acres ; 2nd year Timothy Crop, 10 acres, 1st year Clo^'er, 11 acres: Corn Crop, 40 acres; 
Oats Crop, 40 acres ; Wheat Crop, 15 acres. 

Note that 1 acre home ground and 1 acre orchard have already been charged. The 34 
acres remaining consist of woodland and pasture and will not be taken out of the Real Estate 
account. 

Enter the above eight appropriations in the journal crediting Real Estate with the total 

and post to the ledger in the order named, pages 11 to 18. 

Note. — Small sales of butter, eggs, poultry and the like, which will occur at intervals in the future, will 
be entered in the sales summary sheets first and totaled from the summary to the journal monthly. See 
note on Sales Summary, page 5. 

Mar. 2. Sold to the Sindlinger Dairy Company the six cows numbered in the inven- 
tory 9, 11, 12, 13, 14, and 15, for $290, together with the good will of the milk route which is 
estimated to be worth the unused milk tickets in customers' hands. 

Received checks from Goldleaf Creamery Co. and Eagle Hotel Co. to balance their ac- 
counts. Paid A. Gregory check to balance account. 

Mar. 3. Sold Jonas Overburg, on account, 160 posts @ 20 cts. (farm price). Sold to 
W. Cushman, on account, 10 cords wood (a' $5. 

Mar. 11. Sold for cash 6 hogs, 1300 lb. @ $7. 

Mar. 18. There is on hand on this date among other items, the following merchandise : 
1153 bu. corn, 346 bu. oats, 9 tons clover, 14 tons timothy, 9 cords wood, 88 posts, 255 bu. 
potatoes, 59 bu. turnips. 

From estimates, it appears that there will be needed to carry through the season 600 
bu. corn, all oats on hand, 5 tons clover hay, all timothy, 50 bu. potatoes. 

Sold all clover hay in excess of requirements for cash at $7.90 per ton. 

Mar. 20. Sold W. Cushman, on acct., all wood at $5.50 per cord and all posts on hand 
at 21 cts. each. 

Mar. 22. Sold all potatoes in excess of requirements to A. A. Wells & Co. on account 
@ 57 cts. per bu. 

Sold all corn in excess of requirements for cash @ 53 cts. per bu. 

Mar. 29. Sold all turnips on hand to A. A. Wells & Co., on acct., @ 40 cts. 

Mar. 30. Paid cash for invoice of seed $67.90. (Charge Mdse.) 

Mar. 31. Sold for cash, during the month, per sales summary, dairy products $44.60, 
and poultry products $7. 

vThere was used for seed 20 bu. wheat @ $1.50, 120 bu. oats @ 40 cts., and 2-)4 bu. 
clover (n: $8. (Charge departments and credit Mdse.) 

During the month 62 posts were used at farm price, 18 cts. each, for repairs of fences. 
( Charge Real Estate. ) 

Paid taxes on Real Estate $109.27: and on personal property $25.08, divided as follows: 
Merchandise $13.11, Chattels, $1.22, Dairy $2.80, Teams $6.27, Hogs $1.68. 

The appreciable manure distribution for the winter season is as follows : Barn yard 
manure 63 tons (a) $2 (credit Dairy) ; stable manure 42 tons @ $2.20 (credit Teams) : hog 
manure 58 tons @ $2.25 (credit Hogs) : Poultry manure 3 tons @ $4.50 (credit Poultry). 
Charge all farm manure to Real Estate. 

Remark. — The student is now in position to note the three distinct interests of which the farmer must 
keep account if he properly analyzes his farm organization. 

(1) The land interest, or the investment in the real estate, necessary to carry on the farm processes. 
Investment in land is reasonably free from ordinary business risk. If it produces the equivalent of prevailing 
interest rates on safe investments, the results are satisfactory. This return consists of the credits from the 
rental char-^ed to crops (or to tenants if rented to others), and from the miscellaneous returns from unclassilicd 
portions of the real estate illustrated by wood and pasturape, Tliese credits are diminished by the cost of 
maintenance including repairs, insurance, ta.xes, common fertilizer, etc. 

(2) The manufacturing interest, which involves the outlays including rental of the land and the returns 
from producing farm merchandise. ... 

(3) The trading interest, involving the disoosition of the merchandise either by selling it or turnin.g it 
again into production. The attendant e.xpenses of storage, preparation for sale, and delivery are placed against 
the profit of market prices when sold over farm prices when produced. 

A scheme of accounting to be a reliable guide must separate these three interests, and consider the cost 
and profits of each as apart from the others. 



FARM ACCOUNTING 3l 



SUMMARIES MARCH 31 

Products: 340 gal. milk @ 16 cts., 507 eggs @ 20 cts. per doz., 6 hogs, 1320 lb. @ 

$6.90. 

Chattels Feed: 1 ton prairie hay @ $4, Yi ton clover @ $7.50, 15 bu. corn @ 50 cts., 
10 bu. oats @ 35 cts. 

Dairy Feed: 800 lb. mill feed @ $1.05, 10 bu. oats @ 35 cts., 12 bu. corn @ 50 cts., 
V/s ton clover @ $7.50, sundr)^ feed @ $1.50. 

Team Feed: 1 ton timothy @ $8, ^^ ton prairie @ $4, 24 bu. corn (ai 50 cts., 30 bu. 
oats @ 35 cts., sundry feed $1.50. 

Hog Feed: 30 bu. corn @ 50 cts., 20 bu. oats @ 35 cts., 310 gal. skim milk (a; 5 cts., 
10 bu. potatoes @ 30 cts. 

Poultry Feed: 3 bu. corn @ 50 cts., 3 bu. oats @ 35 cts., 12 hd. cabbage @ 5 cts., 2 
bu. potatoes @ 30 cts. 

Labor Charge: E. A. Atkinson, personal, wages $60, board of help $15; E. P. Johnson 

wages $30. 

Labor Distribution: Mdse. $16.60, Real Estate $22.20. Dairy $12.10, Teams $16.80, 
Hogs $7.81. Poultrv $5.69, Clover Crop $4, Oats Crop $29.50, Wheat Crop $6.50. 

Team Use Distribution: Mdse. $17.80, Real Estate $33.49, 1st year Clover Crop $7, 
Oats Crop $42.80, Wheat Crop $8.40. 

Journalize, post and take trial balance. 

QUESTIONS 

1. How much is the cash balance? 

2. What is the value of feed used in March ? 

3. Name five items other than labor or team use that have been charged to Real Estate 
account. 

4. Is the tendency of Real Estate account toward an exhibit of 5% profit at the end of 
the year ? 

5. How does the product of dairy for March compare with that for February? 

6. Why are field crops charged with ground rent? 

7. 'What three distinct interests are involved in owning and operating a farm? 

8. AVhy are the gains from the use of Real Estate placed at a moderate figure ? 

9. AVhat accounts are used to represent the operations in farm production? 
10. How is the Merchandise account used ? 

APRIL 

Apr. 1. Jonas Overburg returns to work. He is to receive $25 per month and board 
from this date. (Ledger memo.) 

Bought for cash a bill of special fertilizer for garden $31.70. (Special fertilizer should 
be charged to the department to which it is applied.) 

SUMMARIES APRIL 30 

Merchandise Sales: Dairy and poultry products have been sold to E. A. Atkinson, per- 
sonal, on acct., $8.70; for cash $22.40. (Credit Mdse.) 

Remakk.— The student will note that through the spring and summer season the sales will be numerous 
but small, as it is planned to deliver dairy and poultry products, garden truck and small fruit. Hence it is more 
convenient to enter the detailed description of sales in the sales summary book, rather than the journal. A 
report of totals is journalized at the end of the month when cash receipts are entered as one item. 

Products: Dairy $32.40, Poultry $9.89. 

Seed: Used for Garden amounting to $7.30, for Potato Crop 85 bu. potatoes @ 80 
cts, for Corn Crop 6V2 bu. corn (a) $1. (Credit Mdse.) 

Feed: Chattels $15.80. Daii^y $24.50, Teams $39.18, Hogs $56.80, Poultry $3.90. 
(Credit Mdse.) 

Labor Charge: E. A. Atkinson wages $60 and board of hands $30, E. P. Johnson 
wages $30, Jonas Overburg wages $25. 

Labor Distribution: Mdse. $4.80, Real Estate $8.32, Chattels $1.30, Dairy $13.50, 
Teams $15.60, Hogs $8.10, Poultry $2.30, Orchard $3, Small Fruit $6.20, Garden $19, 
Potato Crop $8, Corn Crop $33.40. 



32 FARM ACCOUNTING 



Team. Use: Mdse. $6.20, Orchard $1, Small Fruit $2, Garden $3.50, Potato Crop 
$5.50, Corn Crop $61.20. 

Journalize, post and take trial balance. 

Questions from Trial Balance. What is indicated by the fact that Poultry balance has 
passed from the debit to the credit side ? What is indicated by the Labor balance ? How 
much has been invested in each of the general crops ? Why is the Merchandise balance re- 
duced to so small an amount? 

MAY 

Reminder. — The headings in the summary books should be filled in by the bookkeeper to suit the titles 
to which distribution is made in a given month. For example, during May, sales will be made of dairy, 
poultry, and garden stuff. These should be represented by suitable columns in the sales summary. It is 
impossible to print headings in these books to suit all accounts on all farms or on the same farm at different 
seasons of the year. As these matters were fully explained in the January work, the student will not be re- 
quired to repeat the process here. 

' May 1. Herbert Jones delivered for credit on his account small fruit stock amounting to 
$9.80 and special fertilizer for small fruit $10, orchard $5.20. (Charge departments.) 

-May 2. Paid cash for telephone service $12, for record books and stationery $2.50, for 
subscription to farm paper $2, for repair outfit $9.20, for lubricator $3. (Charge General Ex- 
pense. Open an account with General Expense and Interest on .page 20. ) 

General Expense and Interest are usually given separate ledger titles in a mercantile business where 
these accounts are likely to be active. In the present business the transactions involving these titles will seldom 
occur, and for convenience in ledger and trial balance the titles will be combined. 

SUMMARIES MAY 31 

Mercliandise Sales: For cash $42.60, E. A. Atkinson's acct., $13.75. 

Products: Dairy $29.40, Poultry $8.39, Garden Truck $16.20. 

Seed Used: Garden $2.35, Corn Crop $2.10. 

Feed: Chattels $15.80, Dairy $24.50, Teams $39.18, Hogs $56.80,' Poultry $3.90. (Of 
this amount $18 is for pasturage to be credited to Real Estate. The remainder credits to 
Merchandise. ) 

Labor Charge: E. A. Atkinson wages $60 and board of help $30, E. P. Johnson wages 
$30, Jonas Overburg wages $25. 

Labor Distribution: Mdse. $1.35. Real Estate $12.89, Chattels $2.50, Dairy $10.50, 
Teams $16.30, Hogs $9.95, Poultry $2.15, Orchard $2.50, Small Fruit $7.58, Garden $9.55, 
Potato Crop $8.30, Corn Crop $22.50. 

Team Use Distribution: Mdse. $2.10, Real Estate $4.40, Orchard $2, Small Fruit $4, 
Garden Truck $4.50, Potato Crop $5.50, Corn Crop $32.80. 

Journalize, post and take trial balance. 

JUNE 

June 1. Jonas Overburg discontinued work yesterday evening. He will call to settle 
his account later. 

June 5. Bought of A. A. Wells & Co., on account, for E. A. Atkinson, personal, mer- 
chandise per bill $69.89. 

SUMMARIES JUNE 30 

Merchandise Sales: Hogs, dairy, poultry, small fruit and garden produce, as per sales 
summary, $379.32 for cash with exception of $28.90 to E. A. Atkinson, on personal acct. 

Products: Dairy $24.90, Hogs $283.50, Poultry $10.60, Small Fruit $8.38, Garden 
$46.93. 

Feed: Chattels $6.95, Dairy $20.19, Teams $36.20. Hogs $49.15, Poultry $2.29. 
(Credit all to Mdse. except pasture of 22 animals at $1 each to be credited to Real Estate.) 

Labor Charge: E. A. Atkinson wages $60 and board of help $15, E. P. Johnson wages 
$30, cash paid for work in garden $30. 

Labor Distribution: Mdse. $10.30, Real Estate $4.60, Chattels $2.54, Dairy $9.57, 
Teams $18.68. Hogs $6.40, Poultry $2, Orchard $2, Small Fruit $4.40, Garden $38.71, 
Potato Crop $7.50, Corn Crop $21.60. 

. Team Use Distribution: Mdse. $15.26, Orchard $4, Small Fruit $1.40, Garden $6.50, 
Potato Crop $3, Corn Crop $28.76. 

Journalize, post and take trial balance. 



FARM y-VCCOUNTING 33 



JULY 

Jul}^ 1. Paid the semi-annual interest $175 on farm loan. (Charge Interest and post 
same to the account with General Expense and Interest.) 
Gave Jonas Overburg a check to balance account. 
Received cash from Mrs. Jane Cramer in full of account. 
Received cash from W. Cushman in full of account. 

SUMMARIES JULY 31 

Merchandise Sales: Milk, butter, eggs, fruit and garden truck have been sold for 
$239 80, from which cash was received for all except $21.70 on E. A. Atkinson's account. 

Products: Dairy $20.16, Poultry $1.20, Orchard $1.40, Small Fruit $19.82, Garden 
$174.38, Timothy 18 tons @ 6, Clover 11 tons @ $6. 

Feed: Chattels $17.83, Dairy $16.56, Teams $31.50, Hogs $26.50, Poultry $2.15. 
(Credit Mdse. with all except $22 pasturage.) 

Labor Charge: E. A. Atkinson wages $60, board help $15, E. P. Johnson wages $30, 
sundry cash payments $28.50. 

Labor Distribution: Mdse. $16.80, Real Estate $1.25, Chattels $3.20, Dairy $10.24, 
Teams $15.20, Hogs $7.25, Poultry $3.20, Orchard $3.60, Small Fruit $6.30, Garden 
$34.20, Potato Crop $8, Timothy Crop $10.70, Clover Crop $9.44, Corn Crop $6.20. 

Team Use Distribution: Mdse. $24.60, Garden $4, Potato Crop $6, Timothy Crop 
$8.90, Clover Crop $6.66, Corn Crop $9.45. 

Journalize, post and take trial balance. 

AUGUST 

Aug. 10. Bought of A. A. Wells & Co., on acct., 260 lb. binding twine @ 10 cts. per 
lb., (200 lb. for oats crop and 60 lb. for wheat crop. Make entry charging the two accounts 
named.) 

SUMMARIES AUGUST 31 

Merchandise Sales: For cash $179.97, acct. E. A. Atkinson $30.69. 

Products: Dairy $27.60, Poultry $3.70, Orchard $6.75, Small Fruit $49.60, Garden 
Truck, $105.29, 2400 bu. oats @ 30 cts. and 40 tons oat straw at $1 per ton, to be left 
on the ground for roughage and manure, 300 bu. wheat @ 90 cts. and 15 tons wheat straw 
at 75 cts. per ton, left on the ground as above. (Charge straw to Real Estate.) 

Feed: Chattels $21.28, Dairy $15.80, Teams $26.59, Hogs $27.31, Poultry $2.10. 
(Pasture $26, remainder Mdse.) 

Labor Charge: E. A. Atkinson wages $60, board Johnson, threshing crew and other 
help $34.50, E. P. Johnson wages $30. Paid sundry help cash $8.50 and threshing bill 
$41.40. 

Labor Distribution: Mdse. $14.29, Chattels $3.88, Dairy $11.50, Hogs $6.84, Poultry 
$1.48, Teams $17.39, Orchard $1.25, Small Fruit $12.80, Garden $21.48, Oats Crop (har- 
vesting, threshing and storing) $66, Wheat Crop (harvesting, threshing and storing) $17.45. 

Team Use Distribution: Mdse. $19.38, Garden $3.50, Oats Crop (harvesting, thresh- 
ing and storing) $31, Wheat Crop (harvesting, threshing and storing) $10.70. 

Journalize, post and take trial balance. 

SUMMARIES SEPTEMBER 30 

Merchandise Sales: This includes 6 hogs, 200 bu. potatoes, garden truck, dairy and 
poultry products $378.60 for cash with exception of $26.40 to E. A. Atkinson on account. 

Products: Dairy $34.60, Hogs $71.50, Poultry $5.90, Orchard $1.90, Garden Truck 
$209.10, 1500 bu. Potatoes @ 35 cts. 

Feed: Chattels $21.28, Dairy $15.80, Teams $26.59, Hogs $27.31, Poultry $2.10. 
(Mdse. except $26 pasturage and roughage.) 

Labor Charge: E. A. Atkinson wages $60. and board of help $23.40; E. P. Johnson 
wages $30 ; cash for sundrv help $18.60. 

Labor Distribution: Chattels $4.69, Mdse. $14.30, Dairy $9.50, Teams $18.50, Hogs 
$7.32, Poultry $1.48, Orchard $4.20, Garden $10.70, Potato Crop $61.80. 



34 FARM ACCOUNTING 



Team Use Distribution: Mdse. $21.60, Garden $1.50, Potato Crop $31. 
Journalize, post and take trial balance. 

SUMMARIES OCTOBER 31 

Merchandise Sales: $228.90 (cash $168.50, E. A. Atkinson's acct., the remainder.) 

Products: Dairy $35.30, Poultry $10.49, Garden Truck $16.20, 600 bu. corn @ 40 
cts. 

Feed: Chattels $20.66. Dairy $19.44, Teams $32.58, Hogs $23.51, Poultry $4.20, 
(Mdse. except $21 pasturage and i-oughage.) 

Labor Charge: E. A. Atkinson wages 7^ month $40 and board help $15, E. P. John- 
son wages $30. 

.Labor Distribution: Mdse. $12.50, Real Estate $14.30, Chattels $5.20, Dairy $10.20. 
Teams $12.50, Hogs $8.31, Poultry $3.25, Orchard $36 cts., Corn Crop $18. 

Team Use Distribution: Mdse. $16.60, Corn Crop $20. 

Journalize, post and take trial balance. 

SUMMARIES NOVEMBER 30 

Merchandise Sales: $181.60 ( cash $157.90, E. A. Atkinson's acct. charged with re- 
mainder. ) 

Products: Dairy $36.70, Poultry $13.70, 1600 bu. corn @ 40 cts., and 40 acres stalks 
@ 75 cts. left on ground. 

Feed: Chattels $20.81, Dairy $20.19, Teams $37.27, Hogs $25.60, Poultry $4.20. 
(All Mdse. except $16 roughage.) 

Labor Charge: E. A. Atkinson wages $60, board help $15; E, P. Johnson wages $30. 

Labor Distribution: Mdse. $8, Chattels, $6.25, Dairy $12.30, Teams $12.80, Hogs 
$9.15, Poultry $6.21, Corn Crop $48. 

Team Use Distribution: Mdse. $10.20, Corn Crop $53.30. 

Journalize, post and take trial balance. 

DECEMBER 
Dec. 30. Paid the semi-annual interest on loan due Jan. 1. 

SUMMARIES DECEMBER 31 

Merchandise Sales: $78.10 (cash $52.20, E. A. Atkinson remainder.) 

Products: Dairy $38.30, Poultry $18.40. 

Feed: Chattels $21.60, Dairy $21.14, Teams $30.62, Hogs $26.40, Poultry $4.70. 
(Of this $12 is roughage.) 

Labor Charge: E. A. Atkinson bill for board of Johnson $15, E. P. Johnson wages 
$30. 

Labor Distribution: Mdse. $3, Chattels $6.25, Dairy $12.30, Teams $12.50, Hogs 
$8.40, Poultry $6.21. 

Team Use Distribution: Mdse. $4. 

Journalize, post and take trial balance. 

STATEMENT OF THE BUSINESS 

It is now desirable to make a general statement of the business, so arranged as to show 
resources and liabilities, and losses and gains of the year. The first step is to take an Inven- 
tory of property on hand like the one recorded Jan. 1, of this year. The student can make 
the required statement from the data given below. 

Merchandise — There is on hand the following : 15 tons timothy hay @ $6, 10 tons 
clover hay @ $6, 2000 bu. corn (a) 40 cts., 2300 bu. oats @ 30 cts.,' 370 bu. wheat @ 90 
cts., making a total value of $1973. 

Real Estate — The various outlays for the maintainance of the real estate have kept the 
soil and buildings unimpaired in value. Hence, items Nos. 1 to 7 of the first inventory will 
be re-entered at the valuation $20736.50. 

Chattels — The unclassified animals have increased in number and value being now worth 
$600. 



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36 FARM ACCOUNTING -^ 

Dairy — Four cows remaining inventoried at the beginning of the year Nos. 8, 10, 16, 
and one purchased on Jan. 14 for $39.50, amount all told to $181.50 less 5% average depre- 
ciation, or $175.27. Items Nos. 19 and 20 of first inventory less 12% depreciation equal $88. 
Total Dair}' inventory $263.27. 

Teams — Five horses Nos. 21, 22, 23, and 25, and one bought Feb. 13, were charged at 
$680. They are now considered to have depreciated in value 10% being now worth $612. 
^Machinery Nos. 27 to 35 inventoried Jan. 1, last, at $333 have depreciated in value 12% be- 
ing now worth $293.01. This gives a total teams inventory of $905.01. 

Hogs — There are now on hand 60 head, 6000 lb. worth $5.50 per cwt., or $330. 

Poultry— On hand worth $18.20. 

Orchard — Stock of trees growing worth $100. 

Small Fruit — Stock of shrubbery growing worth $60. 

After completing the statement of resources and liabilities with difference showing net 
worth, make a detailed list of loss and gain accounts showing net gain. Also show this 
gain added to investment at opening giving present worth to agree with the amount shown 
in the financial statement above. 

CLOSING THE BOOKS 

Enter the inventories to the credit of their respective accounts in the ledger (red ink), 
close the accounts on pages 3 to 20 into Loss and Gain (open Loss and Gain account on lower 
half of page 20) and close Loss and Gain account into proprietor's account. Balance the 
proprietor's account, carry down inventories and take a trial balance under date of January 1. 

Remark — The person who has carefully watched the accounts of his farm through the 
period of one year is in position to see the relative gains and losses of different kinds of farm 
industry. He should now compare his results with the results of others as given in the 
records of agricultural experiment stations, the information contained in the best agricultural 
papers, and results obtained by other farmers in his own locality working under similar con- 
ditions. However, conditions are so diverse that he must in the main look to his own books 
rather than to the records of others for his best guidance. A careful record of cost and pro- 
duction, kept through a period of years, will certainly pay many times over for the time and 
attention given to it. 

To this should be added the knowledge of the worth of the business as a business, and 
the observance of the appreciation or depreciation of real and personal property. These facts 
tend toward suitable bargains being made in case of purchase or sale. They also tend to- 
ward a conservation and an average increase of the general values about him which in the 
current language of the dav are termed — his ivorth. 



PUBLISHERS' NOTICE 



The publishers of Farm Accounting have in stock bound and loose leaf blank books in 
sizes suited to the requirements of farm bookkeeping. For description and prices, inquire 
of the school where this course is taught, or write to 

GOOD YEAR-MARSH ALL PUB. CO., 

Cedar Rapids, Iowa. 



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